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PPL Electric Utilities presentation AMR Lessons Learned Anthony M. Osmanski . March 30, 2004. AMR at PPL Electric Utilities. Anthony Osmanski,Technical Support Manager- AMR, PPL Electric Utilities Reports to the Director of AMR - PPL EU

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PPL Electric UtilitiespresentationAMR Lessons LearnedAnthony M. Osmanski

March 30, 2004


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AMR at PPL Electric Utilities

  • Anthony Osmanski,Technical Support Manager- AMR, PPL Electric Utilities

    • Reports to the Director of AMR - PPL EU

    • 30 years electric utility experience in metering operations

    • led technical implementation

    • led the AMR Technology investigation stages

    • led the DCSI proof of concept tests

How significant is an AMR project to a utility?

AMR is the 3rd largest contract a utility will ever undertake, only buying a utility or building a production facility have a larger scope and impact on customers, employees and others!


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Meters per Square Mile

> 225

> 75 and < 225

<75

PPL Electric Utilities Service Area

PPL Corp. Facts

1. $5.2 billion revenue

2. $11.8 billion assets

3. 10,000 sq. mi.

4. 1.3 M electric meters

5. 6 major cities

- 50% of customers

6. Diverse environment


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How was the metering automation proposal justified?

1. What’s the corporate strategy

- how can automating meter reading best meet the corporate strategy

2. Four phases: plan, business case, buy, implement

3 Focus on primary benefits

4. ‘Strategic Value’ perception

5. Adjusting attitude on ‘Risk Management’

- does 1,000,000 x 1 = 1 x 1,000,000?

A successful business case:

1. 45% business case

2. 45% ‘managing’

3. 10% technology


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PPL Project overview

PPL’s strategy is knowledge centric

100% of the customers - no 2nd class customers

  • Customers: 1.3 million meters

  • Financial - NPV, EPS, ~5 year payback

  • Meters: single phase and 3 phase with 66% meter reuse

    • DCSI: all 1 and 3 phase meters except VT/PT connected meters

    • Comverge for VT/PT connected meters

  • Uses: billing, call center, special reads, etc.

  • Schedule: 36 months

  • Data:

    • hourly interval data delivered every 8 hours

    • 15-minute interval delivered every 2 hours

    • daily consumption and demand

  • Roles:

    • PPL: customer, field installation, IT integration, 3 phase meter retrofit

    • DCSI: All residential and commercial customers, deployment,retrofits

    • Comverge: major revenue customers


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The TWACS system will provide hourly data for 1 and 3 phase meters every day and support other services.

Communications Server

CSS

Distribution

Substation

PPL Net

Telecommunications Link

SCADA,

EMS, OMS

Others

Client Workstations (PC)

Substation Control Equipment

Power

Lines

Meter Retrofitted

with Module

ServiceDrop


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To PPL Data Center meters every day and support other services.

Allentown

CDMA -Verizon Wireless

MainGateTM C&I

Oxford

PPL Electric Utilities

PPL Gas Utilities

The Comverge system will provide 15 minute Load Profile data for 3 phase VT meters every day and support other services.


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PPL Business Case Model meters every day and support other services.

  • 3 Major Business Case Parts

  • Finance: NPV, EPS, ROI …

  • AMR deployment plan geo-map

  • Risk Management Plan

  • Financial Model Analyzed:

  • 48 customer groups by OpCenter

  • 15 primary benefit groups

  • 40+ cost groups

  • concurrent AMR strategy review

  • up to 3 technologies/strategy

  • sensitivity to assumption changes

  • Benefits

  • reduced risk, cost and time

  • proven model accepted by finance

  • supports benefit tracking

Customer

Segmentation

Deployment

Issues

Utility AMR

Performance Needs

Benefit Model:

Cost and Benefit

Assumptions

Corporate

Assumptions

Vendor Prices

Financial Model

Non-Vendor Prices

Business Case Report

Finance, Deployment,

Risk Management


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Executive meters every day and support other services.

Management

Co-Chair

Program Managers

Project Managers

Deployment,Change Mgmt,

Operations, Technology

Network

Deploy

Team

Meter

Shop

Team

IT

Integration

Team

..….

PPL selected a joint program committee strategy to ensure that its vendor-partners were aware of and committed to creating the benefits in a timely manner.

  • PROGRAM MANAGERS

  • Total program responsibility

  • Goal setting

  • Motivation

  • Track program status

  • Reporting

  • Communication

  • Settle major conflicts

  • Manage budget


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PPL’s team manages 100s of program activities to ensure effective, timely deployment consistent with maximizing benefits.

  • Process planning

  • Change management plan

  • Responsibility matrix

  • Schedule

  • IBEW work plan

  • FAT, SAT and CAT processes e.g. Comverge CDMA units

  • Technology processes

  • Deployment processes

  • Hard to access

  • Regulatory

  • Training

  • Legacy interface

  • etc

Do not underestimate the uncertainty of change or its differing impacts on people!


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PPL’s overall deployment is going successfully. effective, timely deployment consistent with maximizing benefits.

  • ~1.25 Million operational AMR meters as of March 1st

    • >99% of all operational meters read every day

    • deploying 4,000 meters per day

    • averaging over 60 meters per exchanger

    • deployment will be completed by Sept. 2004

  • Eliminated major meter reading issues

    • hard to access meters of every type

    • no problem reading meters in underground distribution areas

    • works well in Network Meter settings


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Technology Selection

    • Match utility needs with technology infrastructure and operation

    • Define parameters necessary for cost effective selection

    • Don’t forget obsolescence i.e. retrofitting D2/3 or I-50 meters for example.

      • Vectron vs. S4 decision at PPL

  • Understand the Technology

    • Beware of market pressures to sell.

    • Don’t be oversold by marketing hype, understand the limits of the technology

    • Make sure the vendor understands what you are asking for before its too late.

    • Expect surprises. “Oh you wanted it to work THAT WAY?”


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Information Technology (IT)

    • Create a dedicated team early

    • Make them a part of the decision and selection

    • Get a jump on processes. Don’t wait until after contract signing to begin IT process review

  • Change Management

    • Manage Change

    • Identify all the processes that will be touched.

    • Understand and define today’s processes and how will it change with AMR

    • Expect “Push Back” from most on Change management. “no time for this stuff, I have an AMR System to install”


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Sound Processes

    • Understand your processes and eliminate confusion

    • Confusion stops or delays efficient work

    • Confusion creates excuses for delays

    • Never stop work, start-up inertia is deadly in AMR Projects

  • Human Nature Factor

    • Human Nature will breed negative criticism

    • Employees promote negative rumors

    • Kill negative comments with positive news alerts or information updates.

    • Rumor Control is important to keeping a positive spin on AMR deployment

    • Problems occurs with every new system, keep them under control


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Apathy

    • The initial work and process may go well because it has attention

    • Be careful as you progress into the project to maintain focus

    • Excitement wears off and apathy sets it down the road

    • Have controls and monitor, monitor, monitor. (statistics, performance)

  • Do-Over factor

    • Problems tend to be overshadowed by schedule

    • Don’t rush to conclusions on problems or concerns

    • Fixing the symptom rather than the cause will require do overs.

    • And over and over and over


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • 80/20 rule reaches AMR easily

    • Problems at particular sites can overshadow the overall process

    • Keep focused on the big picture

    • One meter not communicating is a limited concern

    • 10,000 meters not communicating may have a similar failure mode that needs to be addressed.

    • Don’t spend 80% of your time on a few concerns. Monitor the total environment

  • 1 million process done once is not equal to 1 process done 1 million times over.

    • Installing 1 million AMR meters should be the same process done right over and over. Have a simple error free process that covers all contingencies.


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Deployment Process

    • Rule #1 KNOW WHERE YOUR METERS ARE AT ALL TIMES

    • Automate the meter exchanges, handheld processors etc downloaded daily

    • Update the population file nightly

  • Maintain adequate inventory

    • Have enough meters to maintain the deployment schedule

    • Make sure you have every type required

    • Filling in the missed holes is costly

    • Seasons of the year is a major factor,

    • Bad weather slows you down but don’t forget good weather speeds things up. Don’t run out of meters in good weather times.


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Small Scale Start-up

    • Do a slow start

    • Exercise your processes

    • Do test billing

    • Check technology

    • Make adjustments before proceeding PAUSE

  • Large Scale Shut -down

    • Have a plan for the end of deployment

    • Turn-over to the business- are they ready

    • All new processes signed off and accepted

    • Operational plans in order


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PPL’s Lessons Learned effective, timely deployment consistent with maximizing benefits.

  • Devil is in the DetailRalph Amato- among others


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How does PPL’s experience match up to expectations? effective, timely deployment consistent with maximizing benefits.

Item Match UP

  • Business case

  • Implementation Plan

  • IT plan

  • Communication plan

  • New internal benefits - had no goal

  • New revenue opportunities - had no goal


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  • For more information: effective, timely deployment consistent with maximizing benefits.

    • Anthony Osmanski

      • PPL Electric Utilities

      • 484.634.3024

      • [email protected]

AMR

Project

Plan


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